Exhibit 99.1

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. Part 2 of this document comprises an explanatory statement in compliance with section 426 of the Companies Act 1985. This document contains Proposals which if implemented will result in the cancellation of trading of the IXEurope Shares on AIM. If you are in any doubt as to the action you should take, you are recommended to seek your own financial advice immediately from your stockbroker, bank manager, solicitor, accountant or other independent financial adviser authorised under the Financial Services and Markets Act 2000, if you are in the United Kingdom, or from another appropriately authorised independent financial adviser if you are in a territory outside the United Kingdom.

If you have sold or otherwise transferred all your IXEurope Shares, please forward this document, together with the accompanying documents, at once to the purchaser or transferee or to the stockbroker, bank or other agent through whom the sale or transfer was effected, for delivery to the purchaser or transferee. However, such documents should not be forwarded or transmitted in or into any jurisdiction in which such act would constitute a violation of the relevant laws in such jurisdiction. If you have sold or transferred only part of your holding of the IXEurope Shares, you should retain these documents.

Lazard, which is authorised and regulated by the Financial Services Authority in the United Kingdom, is acting exclusively as financial adviser to IXEurope in relation to the Proposals and no one else in connection with the Proposals and will not be responsible to anyone other than IXEurope for providing the protections afforded to clients of Lazard or for providing advice in relation to the Proposals or any other matter or arrangement referred to herein.

Citi, which is authorised and regulated by the Financial Services Authority in the United Kingdom, is acting exclusively as financial adviser for Equinix and Equinix, Inc. and no one else in relation to the Proposals and will not be responsible to anyone other than Equinix or Equinix, Inc. for providing the protections afforded to clients of Citi or for providing advice in relation to the Proposals or any other matter or arrangement referred to herein.

This document should be read in conjunction with the accompanying Forms of Proxy.

Recommended Proposals for the Acquisition

of

IXEurope plc

by

Equinix UK Limited

(a wholly owned subsidiary of Equinix, Inc.)

to be effected by means of a

Scheme of Arrangement

under section 425 of the Companies Act 1985

A letter of recommendation to vote in favour of the Proposals from the Chairman of IXEurope is set out in Part 1 of this document.

Notices convening the Court Meeting and the Extraordinary General Meeting both of which will be held at the offices of Simmons & Simmons, CityPoint, One Ropemaker Street, London EC2Y 9SS on 20 August 2007, are set out in Parts 4 and 5 of this document. The Court Meeting will start at 10.00 a.m. and the Extraordinary General Meeting will start at 10.10 a.m. (or, if later, as soon as the Court Meeting has been concluded or adjourned).

The action to be taken in respect of the Meetings is set out on page 4 of this document. Whether or not you plan to attend both or either of the Meetings, please complete the enclosed Forms of Proxy and return them in accordance with the instructions printed thereon to IXEurope’s registrars, Capita Registrars, Proxies, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU as soon as possible, but in any event so as to be received by post or, during normal business hours, by hand, by 10.00 a.m. on 18 August 2007 in the case of the Court Meeting and by 10.10 a.m. on 18 August 2007 in the case of the EGM (or, in the case of any adjournment, not later than 48 hours before the time fixed for the holding of the adjourned Meeting). If the blue Form of Proxy for use at the Court Meeting is not lodged by 10.00 a.m. on 18 August 2007, it may be handed to Capita Registrars on behalf of the Chairman at the Court Meeting before the taking of the poll. However, in the case of the EGM, unless the pink Form of Proxy is lodged so as to be received by 10.10 a.m. on 18 August 2007, it will be invalid. The completion and return of a Form of Proxy will not prevent you from attending and voting at either of the meetings, or any adjournment thereof, in person should you wish and are entitled to do so.

If you have any questions relating to this document or the completion and return of your Forms of Proxy, please call Capita Registrars on 0870 162 3121 (or, from outside the United Kingdom, +44 20 8639 3399) between 9.00 a.m. and 5.00 p.m. Monday to Friday. Please note that calls to these numbers may be monitored or recorded, and no advice on the Proposals can be given.

This document and the accompanying documents have been prepared in connection with a proposal in relation to a scheme of arrangement pursuant to and for the purpose of complying with English law, the City Code and the AIM Rules and information disclosed may not be the same as that which would have been prepared in accordance with the laws of jurisdictions outside England. Nothing in this document or the accompanying documents should be relied on for any other purpose. The distribution of this document in jurisdictions outside the United Kingdom may be restricted by law and therefore persons into whose possession this document comes should inform themselves about and observe such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. Further details in relation to Overseas Shareholders are contained in paragraph 18 of Part 2 of this document. All shareholders or other persons (including nominees, trustees and custodians) who would otherwise intend to, or may have a contractual or legal obligation to, forward this document and Forms of Proxy to a jurisdiction outside the United Kingdom should refrain from doing so and seek appropriate professional advice before taking any action.

IMPORTANT NOTICE

This document does not constitute an offer or an invitation to purchase or subscribe for any securities or a solicitation of an offer to buy any securities pursuant to this document or otherwise in any jurisdiction in which such offer or solicitation is unlawful. This document and the accompanying documents have been prepared in connection with a proposal in relation to a scheme of arrangement pursuant to and for the purposes of complying with English law, the City Code and the AIM Rules. Nothing in this document or the accompanying documents should be relied on for any other purpose. The information disclosed herein may not be the same as that which would have been prepared in accordance with the laws of jurisdictions outside England. As regards persons not resident in the United Kingdom, this document and its availability may be affected by the laws of the relevant jurisdictions in which they are located. Persons who are not resident in the United Kingdom should inform themselves about, and observe, any applicable requirements. Any failure to comply with the applicable requirements may constitute a violation of the securities laws of any such jurisdiction.

No person has been authorised to make representations on behalf of IXEurope, Equinix or Equinix, Inc. concerning the Scheme which are inconsistent with the statements contained herein and any such representations, if made, may not be relied upon as having been so authorised.

The summary of the principal provisions of the Scheme contained in this document is qualified in its entirety by reference to the Scheme itself, the full text of which is set out in Part 3 of this document. Each IXEurope Shareholder is advised to read and consider carefully the text of the Scheme itself. This is because this document, and in particular the Chairman’s Letter in Part 1 and the Explanatory Statement in Part 2 have been prepared solely to assist IXEurope Shareholders in respect of voting on the Scheme.

IXEurope Shareholders should not construe the contents of this document as legal, tax or financial advice and should consult with their own advisers as to the matters described herein.

The statements contained herein are made as at the date of this document, unless some other time is specified in relation to them, and service of this document shall not give rise to any implication that there has been no change in the facts set forth herein since such date. Nothing contained herein shall be deemed to be a forecast, projection or estimate of the future financial performance of IXEurope except where otherwise stated.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This document and the documents accompanying it contain certain statements that are or may be forward-looking. These statements typically contain words such as “intend”, “expect”, “anticipate”, “estimate”, “target”, “plan”, “believe”, “goal”, “will”, “may”, “should”, “would”, “could” and words of similar import. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to, factors identified elsewhere in this announcement as well as the following possibilities: future revenues are lower than expected; costs or difficulties relating to the integration of the businesses of Equinix, Equinix, Inc. and IXEurope, or of other future acquisitions, are greater than expected; expected cost savings from the transaction or from other future acquisitions are not fully realised or realised within the expected time frame; competitive pressures in the industry increase; general economic conditions or conditions affecting the relevant industries, whether internationally or in the places where Equinix, Equinix, Inc. and IXEurope do business, are less favourable than expected; and/or conditions in the securities markets are less favourable than expected. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to have been correct and we therefore caution you not to place undue reliance on these forward-looking statements which speak only as at the date of this document.

Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. Equinix, Equinix, Inc. and IXEurope assume no obligation to update or correct the information contained in this document.

Dealing disclosure requirements

Under the provisions of Rule 8.3 of the City Code if any person is, or becomes, “interested” (directly or indirectly) in one per cent. or more of any class of “relevant securities” of IXEurope, all “dealings” in any “relevant securities” of that company (including by means of an option in respect of, or a derivative referenced to, any such “relevant securities”) must be publicly disclosed by no later than 3.30 p.m. (London time) on the Business Day following the date of the relevant transaction. This requirement will continue until the date on which the Scheme becomes effective or the Proposals lapse or are otherwise withdrawn or on which the “Offer Period” otherwise ends. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire an “interest” in “relevant securities” of IXEurope, they will be deemed to be a single person for the purpose of Rule 8.3.

Under the provisions of Rule 8.1 of the City Code, all “dealings” in “relevant securities” of IXEurope by Equinix, Equinix, Inc. or IXEurope or by any of their respective “associates”, must be disclosed by no later than 12.00 noon (London time) on the London business day following the date of the relevant transaction.

A disclosure table, giving details of the companies in whose “relevant securities” dealings should be disclosed, and the number of such securities in issue, can be found on the Panel’s website at www.thetakeoverpanel.org.uk.

“Interests in securities” arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an “interest” by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities.

Terms in quotation marks are defined in the City Code, which can also be found on the Panel’s website. If you are in any doubt as to whether or not you are required to disclose a “dealing” under Rule 8, you should consult the Panel.

ACTION TO BE TAKEN

The Court Meeting and the EGM will be held at the offices of Simmons & Simmons, CityPoint, One Ropemaker Street, London EC2Y 9SS, on 20 August 2007 at 10.00 a.m. and 10.10 a.m. respectively (or, in the case of the EGM, as soon as the Court Meeting has been concluded or adjourned, if later). The Scheme requires approval at both of these Meetings.

Please check you have received with this document the following:

To vote in favour of the Proposals

Whether or not you plan to attend the Meetings, PLEASE COMPLETE AND SIGN BOTH the blue and pink Forms of Proxy and return them as soon as possible, but in any event so as to be received by no later than 10.00 a.m. on 18 August 2007 in the case of the Court Meeting (blue form) and by no later than 10.10 a.m. on 18 August 2007 in the case of the EGM (pink form) (or, in the case of any adjournment, not later than 48 hours before the time fixed for the holding of the adjourned Meeting). This will enable your votes to be counted at the Meetings in the event of your absence. If the blue Form of Proxy for use at the Court Meeting is not lodged by 10.00 a.m. on 18 August 2007, it may be handed to IXEurope’s registrars, Capita Registrars, on behalf of the Chairman at the Court Meeting, before the taking of the poll. However, in the case of the EGM, unless the pink Form of Proxy is lodged so as to be received by the time mentioned in the instructions thereon, it will be invalid.

The completion and return of a Form of Proxy will not prevent you from attending and voting at the Court Meeting or the EGM, or any adjournment thereof, in person should you wish and are entitled to do so.

IT IS IMPORTANT THAT, FOR THE COURT MEETING, AS MANY VOTES AS POSSIBLE ARE CAST SO THAT THE COURT MAY BE SATISFIED THAT THERE IS A FAIR AND REASONABLE REPRESENTATION OF SCHEME SHAREHOLDERS’ OPINIONS. YOU ARE THEREFORE STRONGLY URGED TO SIGN AND RETURN YOUR FORMS OF PROXY AS SOON AS POSSIBLE.

Helpline

If you have any questions relating to this document or the completion and return of the Forms of Proxy, please call Capita Registrars on 0870 162 3121 (or, from outside the United Kingdom, +44 20 8639 3399) between 9.00 a.m. and 5.00 p.m. Monday to Friday. Please note that calls to this number may be monitored or recorded, and no advice on the Proposals can be given.

TABLE OF CONTENTS

All times shown in this document are London times unless otherwise stated.

The Court Meeting and the Extraordinary General Meeting will be held at the offices of Simmons & Simmons, CityPoint, One Ropemaker Street, London EC2Y 9SS on 20 August 2007.                    

The dates given are based on IXEurope’s current expectations and may be subject to change. If the expected date of the Court Hearing of the petition to sanction the Scheme is changed, IXEurope will give adequate notice of the change by issuing an announcement through a Regulatory Information Service. All Scheme Shareholders have the right to attend the Court Hearing to sanction the Scheme.

PART 1: LETTER FROM THE CHAIRMAN OF IXEUROPE PLC

26 July 2007

[GRAPHIC]

(Registered Number 03796971)

Directors:

Sir Anthony Cleaver*

Guy de Rohan Willner

Christophe de Buchet

Karen Bach

Erick Rinner*

Richard Mead*

David Lister*

To IXEurope Shareholders and, for information only, to participants in the IXEurope Share Schemes

Dear Sir or Madam,

RECOMMENDED PROPOSALS FOR THE ACQUISITION FOR CASH OF IXEUROPE BY EQUINIX

On 28 June 2007, the Boards of IXEurope and Equinix announced that they had agreed the terms of a recommended cash offer for the acquisition by Equinix of the entire issued and to be issued ordinary share capital of IXEurope at 125 pence per share, to be effected by way of a scheme of arrangement under section 425 of the Companies Act (involving a reduction of capital under section 135 of the Companies Act).

Following the Scheme Press Announcement, IXEurope received an unsolicited, conditional proposal from a bona fide third party regarding a potential cash offer. The making of any offer as a result of this proposal was expressed to be subject, inter alia, to completion of satisfactory due diligence. Subsequent to IXEurope making Equinix and Equinix, Inc. aware of this third party proposal (as required under the terms of the Implementation Agreement), Equinix made an increased cash proposal to IXEurope. As a result of Equinix’s revised proposal, the Boards of IXEurope and Equinix announced on 19 July 2007 that they had agreed the terms of an increased recommended cash offer by Equinix for the Acquisition at 140 pence per share, and otherwise on the same terms as the original offer (including that it is effected by way of a scheme of arrangement under section 425 of the Companies Act). The Scheme requires the approval of IXEurope Shareholders and the sanction of the Court. The Proposals (as revised) value the share capital of IXEurope, on a fully diluted basis, at approximately £270.1 million.

I am writing this letter on behalf of the Directors to set out the background to, and the terms of, the Proposals and to explain why the Directors consider the Proposals to be fair and reasonable and why they unanimously recommend that IXEurope Shareholders should vote in favour of them.

The Proposals (excluding the arrangements regarding any IXEurope Shares issued after the Hearing Record Time) are to be effected by way of a scheme of arrangement under section 425 of the Companies Act, which requires the approval of IXEurope Shareholders and the sanction of the Court.

Under the Proposals, which are subject to the Conditions set out in Appendix I of this document, the Scheme Shares will be cancelled and Scheme Shareholders will receive:

for each Scheme Share             140 pence in cash

The Proposals value the share capital of IXEurope, on a fully diluted basis, at approximately £270.1 million and represent a premium of approximately: (a) 103.9 per cent. to the average Closing Price of approximately 68.7 pence per IXEurope Share over the six month period up to and including 17 May 2007, being the last Business Day prior to the release of the 2.4 Announcement; (b) 67.1 per cent. to the average Closing Price of approximately 83.8 pence per IXEurope Share over the 3 month period up to and including 17 May 2007, being the last Business Day prior to the release of the 2.4 Announcement; and (c) 33.3 per cent. to the Closing Price of 105.0 pence per IXEurope Share on 17 May 2007, being the last Business Day prior to the release of the 2.4 Announcement. The value of the Proposals also represents an appreciation of 536.4 per cent. over the 22.0 pence initial public offering price on the Company’s admission to AIM on 7 April 2006.

IXEurope was launched in 1999 by Guy Willner, Chief Executive Officer, and Christophe de Buchet, Chief Operating Officer, and was admitted to trading on AIM in April 2006. Since its foundation, IXEurope has grown revenues every year by over 30 per cent. and in 2006 generated an adjusted EBITDA of £4.9 million from revenues totalling £37.3 million (as per the 2006 annual report of IXEurope).

Whilst the Directors are confident that the prospects of the business as an independent company remain strong, they also recognise the benefits of increased scale and reach achieveable by combining IXEurope with Equinix, Inc., a market leader of carrier-neutral co-location services in the United States and Asia. Customers of IXEurope are increasingly seeking solutions for their worldwide co-location requirements. Customers will benefit from both companies’ expertise in operating datacentre environments, their well-regarded presence in the global internet community, and their experience in serving customers in major financial centres. The Directors believe that the combination will create a leading global co-location services group. The combined group will be better able to pursue the tremendous growth opportunities that exist in the co-location market worldwide.

The Board of IXEurope believes that the Acquisition fairly reflects the potential benefits that can be derived from combining the two businesses. In light of the premiums to the IXEurope Share prices over the periods as set out in paragraph 2 of this Part 1 and the appreciation of 536.4 per cent. over the 22.0 pence initial public offering price on IXEurope’s admission to AIM on 7 April 2006, the IXEurope Board believes that the Proposals represent an opportunity for IXEurope Shareholders to realise an attractive valuation in cash for their IXEurope Shares.

IXEurope is a specialist datacentre provider, focused on providing capacity and services to enterprise, internet and telecom customers. Launched in 1999, IXEurope has demonstrated rapid customer growth and revenue growth in excess of 30 per cent. every year. IXEurope has 14 datacentres in four European countries: the United Kingdom, Germany, France and Switzerland.

Equinix, Inc. is the leading global provider of network-neutral datacentres and internet exchange services for enterprises, content companies, systems integrators and network services providers. Through the company’s Internet Business Exchange™ (IBX)^® centres in ten markets in the US and Asia, customers can directly interconnect with every major global network and ISP for their critical peering, transit and traffic exchange requirements. These interconnection points facilitate the highest performance and growth of the internet by serving as neutral and open marketplaces for internet infrastructure services, allowing customers to expand their businesses while reducing costs.

Further information on Equinix, Inc. and Equinix can be found in Appendix II of this document.

It is Equinix’s intention that, following the Effective Date, the existing employment rights, including pension rights, of all employees of the IXEurope Group will be fully safeguarded.

Further information in respect of the Directors and certain key employees is set out at paragraph 9 of Appendix V.

Information relating to the effect of the Proposals on holders of options and awards under the IXEurope Share Schemes is set out in paragraph 13 of the Explanatory Statement in Part 2 of this document.

Equinix has received irrevocable undertakings to vote in favour of the Scheme (or accept the Takeover Offer, if Equinix elects to implement the Proposals by way of a Takeover Offer) in respect of the IXEurope Shares from the following:

in aggregate representing approximately 66.5 per cent. of the current issued share capital of IXEurope.

The undertakings from the Directors referred to above (and the undertakings given by Nightshade Limited and Southshire Limited, who are the trustees of discretionary trusts of which certain of the Directors of IXEurope, or members of their families, are potential beneficiaries) are binding on them, even if a higher competing offer is announced by a third party, unless: (a) the Scheme Document has not been posted 28 days after the issuance of the Scheme Press Announcement or, if a Takeover Offer is made, if an offer document is not posted within 28 days of the issuance of an announcement to make a Takeover Offer (or, in either case, such longer period as may be agreed with the Panel); (b) the Scheme becomes effective or a Takeover Offer becomes or is declared unconditional in all respects (as relevant); (c) a Takeover Offer is not announced pursuant to Rule 2.5 of the City Code on behalf of Equinix within 10 Business Days of the date on which the Scheme fails to become effective or any condition to which the Scheme is subject becomes incapable of satisfaction and, if capable of waiver, not being waived as therein provided; (d) a Takeover Offer, if made, lapses or is withdrawn without becoming or being declared unconditional in all respects; or (e) the Effective Date does not occur by 31 October 2007.

The undertakings from the institutional shareholders referred to at (B) to (F) and (H) to (K) above are binding on them, even if a higher competing offer is announced by a third party, unless: (a) the Scheme becomes effective or a Takeover Offer becomes unconditional in all respects (as relevant); (b) a Takeover Offer is not announced on behalf of Equinix within 10 Business Days of the date on which the Scheme fails to become effective or any condition to which the Scheme is subject becomes incapable of satisfaction and, if capable of waiver, not being waived as therein provided; (c) a Takeover Offer, if made lapses or is withdrawn without becoming or being declared unconditional in all respects; or (d) the Effective Date does not occur by 31 October 2007.

Therefore, Equinix has received irrevocable undertakings to vote in favour of the Scheme (or accept the Takeover Offer, if Equinix elects to implement the Proposals by way of a Takeover Offer) in respect of an aggregate of 120,460,826 IXEurope Shares, representing approximately 66.5 per cent. of IXEurope’s existing issued share capital.

The attention of IXEurope’s Shareholders is drawn to paragraph 17 of the Explanatory Statement set out in Part 2 of this document in relation to Equinix’s intentions with regard to the cancellation of trading in the IXEurope Shares.

Equinix, Equinix, Inc. and IXEurope have entered into an agreement regarding the implementation of the Scheme (or, if applicable, a Takeover Offer) and the conduct of the business of IXEurope in the period up to the Effective Date (or, if applicable, the date on which the Takeover Offer becomes or is declared unconditional in all respects).

The Proposals are conditional upon the Implementation Agreement not being terminated. Equinix and Equinix, Inc. can terminate the Implementation Agreement if IXEurope breaches certain covenants contained in the Implementation Agreement. Further details of the Implementation Agreement are set out in Appendix VI.

The Implementation Agreement is available for inspection at the offices of IXEurope’s solicitors, Simmons & Simmons, CityPoint, One Ropemaker Street, London EC2Y 9SS, as set out in paragraph 12 of Appendix V.

Pursuant to the Exclusivity Agreement, IXEurope has agreed to pay Equinix, Inc. an inducement fee of £1,980,000 (exclusive of any VAT thereon), which shall represent less than 1 per cent. of the equity value of IXEurope at the initial value of the Acquisition on a fully diluted basis, if during the Exclusivity Period: (i) IXEurope notifies Equinix, Inc. that it does not wish to proceed with or recommend the Offer; (ii) IXEurope enters into any agreement or arrangement in relation to an alternative offer for the entire issued (and to be issued) share capital of IXEurope; or (iii) IXEurope or any of its representatives are in breach of the non-solicit obligations which they have given in respect of any new alternative offer, and Equinix decides not to proceed with the Offer.

Your attention is drawn to the summary UK taxation guide set out in Appendix VII of this document. If you are in any doubt as to your tax position, you should consult your independent professional adviser.

The Scheme is subject to a number of Conditions described in paragraph 6 of Part 2 of this document and set out in full in Appendix I. The Scheme will require approval at the Court Meeting to be held at the offices of Simmons & Simmons, CityPoint, One Ropemaker Street, London EC2Y 9SS on 20 August 2007 at 10.00 a.m. In order to become effective, the Scheme must be approved by a majority in number of the holders of Scheme Shares who vote, representing three-fourths or more in value of Scheme Shares voted, either in person or by proxy, at the Court Meeting. Implementation of the Scheme will also require the passing of a special resolution by IXEurope Shareholders at the EGM to be held at the same place at 10.10 a.m. on the same date (or, if later, as soon thereafter as the Court Meeting has been concluded or adjourned), and the subsequent sanction of the Court. If the Scheme becomes effective, it will be binding on all Scheme Shareholders, including any Scheme Shareholder who did not vote to approve the Scheme.

You will find enclosed with this document:

Whether or not you plan to attend both or either of the Meetings, please complete and sign the enclosed Forms of Proxy and return them in accordance with the instructions printed thereon to IXEurope’s registrars, Capita Registrars, Proxies, The Registry, 34 Beckenham Road, Beckenham Kent BR3 4TU, as soon as possible but, in any event, so as to be received by post or by hand (during normal business hours), by 10.00 a.m. on 18 August 2007 in the case of the Court Meeting and by 10.10 a.m. on 18 August 2007 in the case of the EGM (or, in the case of any adjournment, not later than 48 hours before the time fixed for the holding of the adjourned Meeting). If the blue Form of Proxy for use at the Court Meeting is not lodged by 10.00 a.m. on 18 August 2007, it may be handed to Capita Registrars on behalf of the Chairman at the Court Meeting before the taking of the poll. However, in the case of the EGM, unless the pink Form of Proxy is lodged so as to be received by 10.10 a.m. on 18 August 2007, it will be invalid. The completion and return of a Form of Proxy will not prevent you from attending and voting in person at either the Court Meeting or the EGM, or any adjournment thereof, should you wish and are entitled to do so.

IT IS IMPORTANT THAT, FOR THE COURT MEETING, AS MANY VOTES AS POSSIBLE ARE CAST SO THAT THE COURT MAY BE SATISFIED THAT THERE IS A FAIR AND REASONABLE REPRESENTATION OF SCHEME SHAREHOLDERS’ OPINION. YOU ARE THEREFORE STRONGLY URGED TO SIGN AND RETURN YOUR FORMS OF PROXY AS SOON AS POSSIBLE.

If you have any questions relating to this document or the completion and return of the Forms of Proxy please contact Capita Registrars on 0870 162 3121 (or, from outside the United Kingdom +44 20 8639 3399) between 9.00 a.m. and 5.00 p.m. Monday to Friday. Please note that calls to this number may be monitored or recorded, and no advice on the Proposals can be given.

Overseas Shareholders should refer to paragraph 18 of the Explanatory Statement set out in Part 2 of this document. Details relating to settlement are included in paragraph 20 of the Explanatory Statement set out in Part 2 of this document.

The Directors, who have been so advised by Lazard, consider the terms of the Proposals to be fair and reasonable. In providing its advice, Lazard has taken into account the Directors’ commercial assessments.

The Directors consider that the Proposals are in the best interests of IXEurope’s Shareholders as a whole. Accordingly, the Directors unanimously recommend that the Scheme Shareholders vote in favour of the resolution to be proposed at the Court Meeting, and that IXEurope’s Shareholders vote in favour of the resolution to be proposed at the EGM, as the Directors, Nightshade Limited and Southshire Limited (who are the trustees of discretionary trusts of which certain of the Directors or members of their families are potential beneficiaries) have irrevocably undertaken to do in respect of such Directors’ entire beneficial holdings in IXEurope Shares and the entire holdings in IXEurope Shares of Nightshade Limited and Southshire Limited respectively, which in aggregate amount to 5,288,800 IXEurope Shares, representing approximately 2.9 per cent. of IXEurope’s existing issued share capital.

Yours faithfully,

Sir Anthony Cleaver

Chairman

PART 2: EXPLANATORY STATEMENT

(in compliance with section 426 of the Companies Act)

26 July 2007

To IXEurope Shareholders and, for information only, to participants in the IXEurope Share Schemes

Dear Sir or Madam,

Recommended Proposals for the acquisition of IXEurope by Equinix

On 28 June 2007 the Boards of IXEurope and Equinix announced that they had agreed the terms of the recommended Proposals for the acquisition by Equinix of the entire issued and to be issued share capital of IXEurope, to be effected by way of a scheme of arrangement under section 425 of the Companies Act (involving a reduction of capital under section 135 of the Companies Act).

Following the Scheme Press Announcement, IXEurope received an unsolicited, conditional proposal from a bona fide third party regarding a potential cash offer. The making of any offer as a result of this proposal was expressed to be subject, inter alia, to completion of satisfactory due diligence. Subsequent to IXEurope making Equinix and Equinix, Inc. aware of this third party proposal (as required under the terms of the Implementation Agreement), Equinix made an increased cash proposal to IXEurope. As a result of Equinix’s revised proposal, the Boards of IXEurope and Equinix announced on 19 July 2007 that they had agreed the terms of an increased recommended cash offer by Equinix for the Acquisition at 140 pence per share, and otherwise on the same terms as the original offer (including that it is effected by way of a scheme of arrangement under section 425 of the Companies Act). The Scheme requires the approval of IXEurope Shareholders and the sanction of the Court. The Proposals (as revised) value the share capital of IXEurope, on a fully diluted basis, at approximately £270.1 million.

The Directors have been advised by Lazard in connection with the Proposals. We are writing to you to explain the Proposals, to explain why the Directors consider the Proposals to be fair and reasonable and why they unanimously recommend that IXEurope Shareholders should vote in favour of them and to provide you with other relevant information. Statements made in this letter which refer to the reasons for the Proposals, information concerning the business of IXEurope and intentions and expectations regarding IXEurope reflect the views of the Directors. Statements made in this letter which refer to the background to the recommendation of the Directors reflect the views of the Directors.

In giving its advice, Lazard is advising the Directors in relation to the Proposals and is not acting for any Directors in their personal capacities nor for any IXEurope Shareholders in relation to the Proposals. Lazard will not be responsible to any such person for providing the protections afforded to its clients or for advising any such person in relation to the Proposals. In particular, Lazard will not owe any duties or responsibilities to any particular IXEurope Shareholder concerning the Proposals.

This letter sets out and explains the provisions of the Scheme. The Scheme is set out in full in Part 3 to this document. Your attention is also drawn to “Conditions to implementation of the Proposals and the Scheme” set out in Appendix I to this document, and the further information set out in Appendices II to VII to this document.

Your attention is drawn to the letter from the Chairman of IXEurope on behalf of the Directors set out in Part 1 of this document, which forms part of this Explanatory Statement and which contains the unanimous recommendation by the Directors to Scheme Shareholders to vote in favour of the resolution to be proposed at the Court Meeting, and to IXEurope Shareholders to vote in favour of the resolution to be proposed at the EGM, as the Directors, Nightshade Limited and Southshire Limited (who are the trustees of discretionary trusts of which certain of the Directors or members of their families are potential beneficiaries) have irrevocably undertaken to do in respect of such Directors’ entire beneficial holdings in IXEurope Shares and the entire holdings in IXEurope Shares of Nightshade Limited and Southshire Limited, respectively, which in aggregate amount to 5,288,800 IXEurope Shares, representing approximately 2.9 per cent. of IXEurope’s existing issued share capital.

The Directors, who have been so advised by Lazard, consider the terms of the Proposals to be fair and reasonable. In providing its advice, Lazard has taken into account the Directors’ commercial assessments.

The Proposals (excluding the arrangements regarding any IXEurope Shares issued after the Hearing Record Time) are to be effected by way of the Scheme, which is a scheme of arrangement under section 425 of the Companies Act, which requires the approval of Scheme Shareholders and the sanction of the Court. The reduction of capital which forms part of the Scheme also requires the approval of the IXEurope Shareholders and the confirmation of the Court.

Under the Proposals, which are subject to the Conditions set out in Appendix I of this document, the Scheme Shares will be cancelled and the Scheme Shareholders will receive:

The Proposals value the share capital of IXEurope, on a fully diluted basis, at approximately £270.1 million and represent a premium of approximately: (a) 103.9 per cent. to the average Closing Price of approximately 68.7 pence per IXEurope Share over the six month period up to and including 17 May 2007, being the last Business Day prior to the release of the 2.4 Announcement; (b) 67.1 per cent. to the average Closing Price of approximately 83.8 pence per IXEurope Share over the 3 month period up to and including 17 May 2007, being the last Business Day prior to the release of the 2.4 Announcement and (c) 33.3 per cent. to the Closing Price of 105.0 pence per IXEurope Share on 17 May 2007 being the last Business Day prior to the release of the 2.4 Announcement. The value of the Proposals also represents an appreciation of 536.4 per cent. over the 22.0 pence initial public offering price on the Company’s admission to AIM on 7 April 2006.

Equinix has received irrevocable undertakings to vote in favour of the Scheme (or accept the Takeover Offer, if Equinix elects to implement the Proposals by way of a Takeover Offer) in respect of the IXEurope Shares from the following:

16

in aggregate representing approximately 66.5 per cent. of the current issued share capital of IXEurope.

The undertakings from the Directors referred to above (and the undertakings given by Nightshade Limited and Southshire Limited, who are the trustees of discretionary trusts of which certain of the Directors of IXEurope, or members of their families, are potential beneficiaries) are binding on them, even if a higher competing offer is announced by a third party, unless: (a) the Scheme Document has not been posted 28 days after the issuance of the Scheme Press Announcement or, if a Takeover Offer is made, if an offer document is not posted within 28 days of the issuance of an announcement to make a Takeover Offer (or, in either case, such longer period as may be agreed with the Panel); (b) the Scheme becomes effective or a Takeover Offer becomes or is declared unconditional in all respects (as relevant); (c) a Takeover Offer is not announced pursuant to Rule 2.5 of the City Code on behalf of Equinix within 10 Business Days of the date on which the Scheme fails to become effective or any condition to which the Scheme is subject becomes incapable of satisfaction and, if capable of waiver, not being waived as therein provided; (d) a Takeover Offer, if made, lapses or is withdrawn without becoming or being declared unconditional in all respects; or (e) the Effective Date does not occur by 31 October 2007.

The undertakings from the institutional shareholders referred to at (B) to (F) and (H) to (K) above are binding on them, even if a higher competing offer is announced by a third party, unless: (a) the Scheme becomes effective or a Takeover Offer becomes unconditional in all respects (as relevant); (b) a Takeover Offer is not announced on behalf of Equinix within 10 Business Days of the date on which the Scheme fails to become effective or any condition to which the Scheme is subject becomes incapable of satisfaction and, if capable of waiver, not being waived as therein provided; (c) a Takeover Offer, if made lapses or is withdrawn without becoming or being declared unconditional in all respects; or (d) the Effective Date does not occur by 31 October 2007.

Therefore, Equinix has received irrevocable undertakings to vote in favour of the Scheme (or accept the Takeover Offer, if Equinix elects to implement the Proposals by way of a Takeover Offer) in respect of an aggregate of 120,460,826 IXEurope Shares, representing approximately 66.5 per cent. of IXEurope’s existing issued share capital.

The Scheme is an arrangement made between IXEurope and the Scheme Shareholders under section 425 of the Companies Act subject to the sanction of the Court. The procedure involves an application by IXEurope to the Court to sanction the Scheme and to confirm the related reduction of capital, in consideration for which Scheme Shareholders will receive cash on the basis set out in paragraph 3 of this Part 2. The cancellation of the Scheme Shares and subsequent issue of New IXEurope Shares to Equinix (together with the amendments to the IXEurope Articles to be proposed at the EGM) will result in IXEurope becoming a wholly-owned subsidiary of Equinix.

To become effective, the Scheme of Arrangement requires, amongst other things, the approval of a majority in number of Scheme Shareholders who vote, representing three-fourths or more in value of Scheme Shares voted, either in person or by proxy, at the Court Meeting, and the approval of the capital reduction by a three-quarters majority of IXEurope Shareholders at the EGM.

Before the Court’s approval can be sought, the Scheme of Arrangement will require approval by Scheme Shareholders at the Court Meeting and the passing of a special resolution by IXEurope Shareholders to implement the Scheme at the EGM. Notices of the Meetings are set out in Parts 4 and 5 of this document. Scheme Shareholders’ entitlement to attend and vote at the Court Meeting and IXEurope Shareholders’ entitlement to attend and vote at the EGM and the number of votes which may be cast at the Meetings will be determined by reference to the Voting Record Time (or, if such meetings are adjourned, on the register of members not less than 48 hours before the relevant adjourned meeting, or 48 hours before the Court Meeting, if both Meetings are adjourned). Only IXEurope Shareholders registered on the register of members of IXEurope at the Voting Record Time (or, if such Meetings are adjourned, on the register of members not less than 48 hours before the relevant adjourned Meeting, or 48 hours before the Court Meeting, if both Meetings are adjourned) shall be entitled to attend and vote at the relevant Meeting.

You will find set out in Part 4 of this document the notice of the Court Meeting of the Scheme Shareholders which has been convened by direction of the Court for the purpose of considering and, if thought fit, approving the Scheme.

The Court Meeting, which has been convened for 20 August 2007 at 10.00 a.m., is being held at the direction of the Court to seek the approval of the Scheme Shareholders to the Scheme. At the Court Meeting, voting will be by poll and not a show of hands and each member present in person or by proxy will be entitled to one vote for each Scheme Share held. The approval required at the Court Meeting is a majority in number of Scheme Shareholders who vote, representing three-fourths or more in value of the Scheme Shares voted, either in person or by proxy, at the Court Meeting.

Scheme Shareholders have the right to raise any objections they may have to the Scheme at the Court Meeting.

It is especially important that as many votes as possible are cast (whether in person or by proxy) at the Court Meeting so that the Court can be satisfied that there is a fair representation of the opinion of Scheme Shareholders. You are therefore strongly urged to complete and lodge the blue Form of Proxy as soon as possible, and, in any event by 10.00 a.m. on 18 August 2007 for the Court Meeting (or, in the case of adjournment, not later than 48 hours before the time fixed

for the holding of the adjourned Meeting). A Form of Proxy for the Court Meeting not lodged at the relevant time may be handed to IXEurope’s registrars, Capita Registrars, on behalf of the Chairman of the Court Meeting, before the taking of the poll.

In addition to the Court Meeting, the EGM has been convened for 20 August 2007 at 10.10 a.m. (or, if later, as soon thereafter as the Court Meeting is concluded or adjourned) to consider and, if thought fit, to pass a special resolution to approve:

You will find the notice of Extraordinary General Meeting set out in Part 5 of this document.

Voting on the special resolution will be on a show of hands unless a poll is demanded. The Chairman reserves the right to demand that the vote of IXEurope Shareholders at the EGM be held by way of a poll and, in such event, each IXEurope Shareholder present in person or by proxy will be entitled to one vote for every IXEurope Share held. The quorum for the EGM will be two or more persons holding the IXEurope Shares present in person or by proxy. The special resolution to be put to the EGM requires approval by a majority of three-fourths or more of the votes attaching to the IXEurope Shares voted at the EGM.

It is proposed that the IXEurope Articles be amended so as to ensure that any Scheme Shares issued, at any time on or after the Voting Record Time but on or prior to the Hearing Record Time (for example, as a result of the exercise of options under the IXEurope Share Schemes), will be subject to the terms of the Scheme. It is also proposed to amend the IXEurope Articles so that any person (other than those IXEurope Shareholders acting in concert with Equinix) to whom the Scheme Shares are issued, or transferred, after the Hearing Record Time will transfer all such Scheme Shares issued or transferred to them to Equinix (and Equinix shall purchase such Scheme Shares). The consideration payable for the transfer of each such Scheme Share shall be 140 pence in cash per Scheme Share (being the same amount as the cash consideration payable per Scheme Share pursuant to the Scheme).

No new Scheme Shares will be issued between the Hearing Record Time and the Effective Date.

Any IXEurope Shares issued after the Hearing Record Time will be subject to the provisions of the articles of association of IXEurope as amended pursuant to the resolution passed in the EGM.

These arrangements are intended to avoid any person (other than Equinix) holding the Scheme Shares after the Effective Date. Paragraph 4 of the special resolution set out in the notice of EGM set out in Part 5 of this document seeks IXEurope Shareholders’ approval for such amendments.

The Court Hearing is scheduled for 11 September 2007. All Scheme Shareholders are entitled to attend the Court Hearing in person or to be represented by counsel to support or oppose the sanctioning of the Scheme and the associated reduction of capital.

The Scheme will become effective on the delivery by IXEurope to the Registrar of Companies of a copy of the Court Order sanctioning the Scheme and confirming the reduction of capital involved

therein and, in respect of the capital reduction, the registration of the Court Order by the Registrar of Companies. Subject to the requisite approvals being obtained from IXEurope Shareholders and the sanction of the Court, this is expected to occur on 14 September 2007. If the Scheme has not become effective by 31 October 2007 (or such later date as Equinix and IXEurope and the Court may allow), it will lapse and the Proposals will not proceed.

The Scheme contains a provision for Equinix and IXEurope jointly to consent on behalf of all persons affected to any modification of, or addition to, the Scheme or to any condition approved or imposed by the Court. The Court would be unlikely to approve any modification of, or addition to, or impose a condition to the Scheme which might be material to the interests of the Scheme Shareholders unless Scheme Shareholders were informed of any modification, addition or condition. It would be a matter for the Court to decide, in its discretion, whether or not a further meeting of Scheme Shareholders should be held in these circumstances. Similarly, if a modification, addition or condition is put forward which, in the opinion of the Directors, is of such a nature or importance that it requires the consent of Scheme Shareholders at a further meeting, the Directors will not take the necessary steps to enable the Scheme to become effective unless and until such consent is obtained.

The Conditions to the Proposals are set out in full in Appendix I to this document. The Proposals are conditional, inter alia, upon:

Once the necessary approvals from IXEurope Shareholders have been obtained and the other Conditions (set out in Appendix I to this document) have been satisfied or (where applicable) waived, the Scheme and the associated reduction of capital will become effective following sanction by the Court upon delivery of the Court Order to the Registrar of Companies and, in the case of the associated reduction of capital, the registration of the Court Order by the Registrar of Companies, which is expected to occur on 14 September 2007.

Once effective, the Scheme of Arrangement will be binding on all Scheme Shareholders, including those who did not vote, or who voted against it, at the Meetings or who could not be traced.

It is also proposed that, following the Effective Date, the admission to trading of IXEurope Shares on AIM will be cancelled and IXEurope will be re-registered as a private company under the relevant provisions of the Companies Act.

Equinix, Inc. is the leading global provider of network-neutral datacentres and internet exchange services for enterprises, content companies, systems integrators and network services providers. Through the company’s Internet Business Exchange™ (IBX)^® centres in ten markets in the US and Asia, customers can directly interconnect with every major global network and ISP for their critical peering, transit and traffic exchange requirements. These interconnection points facilitate the highest performance and growth of the internet by serving as neutral and open marketplaces for internet infrastructure services, allowing customers to expand their businesses while reducing costs.

Further information on Equinix, Inc. and Equinix can be found in Appendix II of this document.

IXEurope is a specialist datacentre provider, focused on providing capacity and services to enterprise, internet and telecom customers. Launched in 1999, IXEurope has demonstrated rapid customer growth and revenue growth in excess of 30 per cent. every year. IXEurope has 14 datacentres in four European countries: the United Kingdom, Germany, France and Switzerland.

The details of the background to, and reasons for, recommending the Proposals are set out in full in the letter from the Chairman, on behalf of the Directors, in Part 1 of this document.

The Acquisition is strongly aligned with Equinix, Inc.’s overall strategy to be one of the world’s leading network-neutral collocation companies. Equinix, Inc. believes that the primary benefits of the Acquisition are:

Equinix, Inc. believes the Acquisition will:

Also, as customers increasingly use network-neutral datacentres to house their most critical infrastructure, the importance of selecting a vendor such as Equinix, Inc. with substantial financial resources and global presence is expected to grow.

It is Equinix’s intention that, following the Effective Date, the existing employment rights, including pension rights, of all employees of the IXEurope Group will be fully safeguarded.

Further information in respect of the Directors and certain key employees of IXEurope is set out at paragraph 9 of Appendix V.

The interests of the Directors in the Scheme Shares are set out in Appendix V. The effect of the Scheme on the interests of the Directors does not differ from the effect on any other Scheme Shareholders.

The Proposals will affect share options granted under the IXEurope Share Schemes. Participants in the IXEurope Share Schemes will be contacted regarding the effect of the Proposals on their rights and appropriate proposals will be made in due course. These proposals will include the opportunity for holders of options granted under the IXEurope Unapproved Share Option Scheme to accept a cash sum equal to the difference between 140 pence and the exercise price of each share under option in consideration for the cancellation of such options.

Guy Willner and Christophe de Buchet, as holders of options to acquire IXEurope Shares under the IXEurope Founders Share Option Scheme, have agreed to accept a proposal by Equinix to cancel those options in consideration for a cash sum of approximately £2.5 million (representing 71.6 per cent. of a traditionally calculated cash cancellation payment) and a right to acquire shares of common stock of Equinix, Inc. (with a value of approximately £1.0 million representing 28.4 per cent. of a traditionally calculated cash cancellation payment) which will vest, subject to continued employment up to 31 December 2008, as to 50.0 per cent. on 31 December 2008 and as to 50.0 per cent. by reference to certain 2008 revenue and EBITDA targets.

The Proposals are being financed under a committed debt facility of up to US$500 million arranged by Citibank, N.A. and Equinix, Inc.’s corporate cash reserves.

Further details regarding Equinix’s arrangements for financing the Proposals are set out in paragraph 7 of Appendix V.

Citi is satisfied that sufficient financial resources are available to Equinix to satisfy in full the cash consideration payable by Equinix to IXEurope Shareholders under the terms of the Proposals.

Pursuant to the Exclusivity Agreement, IXEurope has agreed to pay Equinix, Inc. an inducement fee of £1,980,000 (exclusive of any VAT payable thereon), which shall represent less than 1 per cent. of the equity value of IXEurope at the initial value of the Acquisition on a fully diluted basis, if during the Exclusivity Period: (i) IXEurope notifies Equinix, Inc. that it does not wish to proceed with or recommend the Offer; (ii) IXEurope enters into any agreement or arrangement in relation to an alternative offer for the entire issued (and to be issued) share capital of IXEurope; or (iii) IXEurope or any of its representatives are in breach of the non-solicit obligations which they have given in respect of any new alternative offer, and Equinix decides not to proceed with the Offer.

Equinix, Equinix, Inc. and IXEurope have entered into an agreement regarding the implementation of the Scheme (or if applicable, a Takeover Offer) and the conduct of the business of IXEurope in the period up to the Effective Date (or if applicable, the date on which the Takeover Offer becomes or is declared unconditional in all respects).

The Proposals are conditional upon the Implementation Agreement not being terminated. Equinix or Equinix, Inc. can terminate the Implementation Agreement if IXEurope breaches certain covenants contained in the Implementation Agreement. Further details of the Implementation Agreement are set out in Appendix VI.

The Implementation Agreement is available for inspection at the offices of IXEurope’s solicitors, Simmons & Simmons, CityPoint, One Ropemaker Street, London EC2Y 9SS, as set out in paragraph 12 of Appendix V.

The London Stock Exchange will be requested to cancel the admission to trading of the IXEurope Shares on AIM with effect from 7.30 a.m. on the Effective Date. The last day of dealings in the IXEurope Shares on AIM is expected to be 13 September 2007 (being the Business Day immediately prior to the Effective Date) and no transfers of the IXEurope Shares will be registered after 5.00 p.m. on that date. On the Effective Date, share certificates in respect of the IXEurope Shares will cease to be valid and should, if so requested by IXEurope, be sent to IXEurope. In addition, entitlements to the IXEurope Shares held within the CREST system will be cancelled on the Effective Date.

As regards Overseas Shareholders, the Proposals may be affected by the laws of their relevant jurisdictions. Such Overseas Shareholders should inform themselves about and observe any applicable legal requirements. It is the responsibility of each Overseas Shareholder to satisfy himself/herself as to the full observance of the laws of the relevant jurisdiction in connection with the Proposals, including the obtaining of any governmental, exchange control or other consents which may be required, or the compliance with other necessary formalities which are required to be observed and the payment of any taxes due in such jurisdiction.

This document has been prepared for the purposes of complying with English law, the City Code and the AIM Rules and the information disclosed may not be the same as that which would have been disclosed if this document had been prepared in accordance with the laws of jurisdictions outside the United Kingdom.

A summary of relevant UK taxation, which is intended as a general guide only is set out in Appendix VII.

Subject to the Scheme becoming effective (and except as provided in paragraph 18 above in this Part 2 in relation to Overseas Shareholders), settlement of the cash consideration to which any Scheme Shareholder is entitled under the Proposals will be effected as follows:

Where, on the Effective Date, Scheme Shareholders hold Scheme Shares in certificated form, cheques for cash entitlements due under the Scheme will be despatched as soon as practicable after the Effective Date, and in any event no later than 14 days thereafter, by first class post to such holders at the addresses appearing in the register of members of IXEurope as at the Scheme Record Time or, in the case of joint holders, to the holder whose name appears first in such register in respect of the joint holding concerned or in accordance with any special instructions regarding communications. All such payments will be made in pounds sterling by cheque drawn on a branch of a UK clearing bank. All documents and remittances sent through the post will be sent at the risk of the person(s) entitled thereto.

As soon as practicable after the Effective Date, and in any event no later than 14 days thereafter, Scheme Shareholders who hold their Scheme Shares in CREST on the Effective Date will have their cash entitlements paid, by means of CREST, by Equinix procuring the creation of a CREST payment obligation in favour of the Scheme Shareholder’s payment bank in respect of the amount due, in accordance with CREST payment arrangements. As from the Scheme Record Time, each holding of Scheme Shares credited to any stock account in CREST will be disabled. Equinix reserves the right to pay all or any part of the cash consideration to any Scheme Shareholders holding Scheme Shares in CREST in the manner referred to in the above paragraph “Scheme Shares held in certificated form” if, for any reason, it wishes to do so.

The Scheme is subject to a number of conditions described in paragraph 6 of this Part 2 and set out in full in Appendix I. The Scheme will require approval at the Court Meeting to be held at the offices of Simmons & Simmons, CityPoint, One Ropemaker Street, London EC2Y 9SS on 20 August 2007 at 10.00 a.m. In order to become effective, the Scheme must be approved by a majority in number of Scheme Shareholders who vote, representing three-fourths or more in value of the Scheme Shares voted, either in person or by proxy, at the Court Meeting. Implementation of the Scheme will also require the passing of the special resolution by IXEurope Shareholders at the EGM to be held at the same place at 10.10 a.m. on the same date (or, if later, as soon thereafter as the Court Meeting is concluded or adjourned), and the subsequent sanction of the Court. If the Scheme becomes effective, it will be binding on all Scheme Shareholders, including any Scheme Shareholders who did not vote to approve the Scheme.

You will find enclosed with this document:

Whether or not you plan to attend both or either of the Meetings, please complete and sign the enclosed Forms of Proxy and return them in accordance with the instructions printed thereon to Capita Registrars, Proxies, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU, as soon as possible, but in any event, so as to be received by post or by hand (during normal business hours) by 10.00 a.m. on 18 August 2007 in the case of the Court Meeting and by 10.10 a.m. on

18 August 2007 in the case of the EGM (or, in the case of any adjournment, not later than 48 hours before the time fixed for the holding of the adjourned Meeting). If the blue Form of Proxy for use at the Court Meeting is not lodged by 10.00 a.m. on 18 August 2007, it may be handed to IXEurope’s registrars, Capita Registrars, on behalf of the Chairman at the Court Meeting before the taking of the poll. However, in the case of the EGM, unless the pink Form of Proxy is lodged so as to be received by 10.10 a.m. on 18 August 2007, it will be invalid. The completion and return of a Form of Proxy will not prevent you from attending and voting at either the Court Meeting or the EGM, or any adjournment thereof, in person should you wish and are entitled to do so.

IT IS IMPORTANT THAT, FOR THE COURT MEETING, AS MANY VOTES AS POSSIBLE ARE CAST SO THAT THE COURT MAY BE SATISFIED THAT THERE IS A FAIR AND REASONABLE REPRESENTATION OF SCHEME SHAREHOLDERS’ OPINION. YOU ARE THEREFORE STRONGLY URGED TO SIGN AND RETURN YOUR FORMS OF PROXY AS SOON AS POSSIBLE.

If you have any questions relating to this document or the completion and return of the Forms of Proxy please call Capita Registrars on 0870 162 3121 (or, from outside the United Kingdom, +44 20 8639 3399) between 9.00 a.m. and 5.00 p.m. Monday to Friday. Please note that calls to this number may be monitored or recorded, and no advice on the Proposals may be given.

Overseas Shareholders should refer to paragraph 18 of this Part 2. Details relating to settlement are included in paragraph 20 of this Part 2.

The terms of the Scheme are set out in full in Part 3 of this document. Further information regarding the IXEurope Group is set out in Appendix III to this document. Particulars of documents available for inspection are given in paragraph 12 of Appendix V to this document. Your attention is also drawn to the further information contained in the other Appendices, which form part of this document.

PART 3: THE SCHEME OF ARRANGEMENT

IN THE HIGH COURT OF JUSTICE

CHANCERY DIVISION

COMPANIES COURT No. 5073 of 2007

IN THE MATTER OF IXEUROPE PLC

and

IN THE MATTER OF THE COMPANIES ACT 1985

SCHEME OF ARRANGEMENT

(under section 425 of the Companies Act 1985)

between

IXEUROPE PLC

and

THE HOLDERS OF THE SCHEME SHARES

PRELIMINARY

Business Day: any day (excluding Saturdays, Sundays and public holidays) on which banks are open for business in the City of London;

Cash Consideration: the cash consideration payable by Equinix for the Scheme Shares under clause 2 of this Scheme;

certificated or certificated form: in relation to a share or other security, where that share or other security is held in certificated form (that is, not in CREST);

Companies Act: the Companies Act 1985, as amended;

Court: the High Court of Justice in England and Wales;

Court Hearing: the hearing by the Court of the petition to sanction this Scheme;

Court Meeting: the meeting of Scheme Shareholders (and any adjournment thereof) convened pursuant to an order of the Court pursuant to section 425 of the Companies Act, to be held at 10.00 a.m., on 20 August 2007, for the purpose of considering and, if thought fit, approving the Scheme (with or without amendment) of which notice is set out on page 160 of the document of which this Scheme forms part;

Court Order: the order of the Court granted at the Court Hearing sanctioning this Scheme under section 425 of the Companies Act and confirming the reduction of share capital pursuant to the Scheme under section 137 of the Companies Act;

CREST: the relevant system (as defined in the Regulations) in respect of which Euroclear is the Operator (as defined in the Regulations);

Effective Date: the date on which this Scheme becomes effective in accordance with this Scheme;

EGM: the extraordinary general meeting of IXEurope Shareholders (and any adjournment thereof) convened in connection with the Scheme to be held at 10.10 a.m. on 20 August 2007 (or, if later, as soon as the Court Meeting has been concluded or adjourned) of which notice is set out on page 161 of the document of which this Scheme forms part;

Equinix: Equinix UK Limited (incorporated in England and Wales under registered number 06293383);

Euroclear: Euroclear UK & Ireland Limited;

Hearing Date: the date of the commencement of the hearing by the Court of the petition to sanction this Scheme and to confirm the reduction of capital provided for by this Scheme;

Hearing Record Time: 6.00 p.m. on the Business Day immediately preceding the Hearing Date;

Holder: a registered holder (and “holder” includes any person entitled by transmission);

Regulations: the Uncertificated Securities Regulations 2001 (SI 2001 No. 3755);

Scheme: this scheme of arrangement under section 425 of the Companies Act between IXEurope and Scheme Shareholders in its present form or with or subject to any modification thereof or in addition thereto or condition approved or imposed by the Court and agreed by IXEurope and Equinix;

Scheme Record Time: 5.00 p.m. on the last Business Day immediately prior to the Effective Date;

Scheme Shareholders: holders of Scheme Shares;

Scheme Shares: the IXEurope Shares:

(i) in issue as at the date of this document, namely 181,184,323;

(ii) (if any) issued after the date of this document and prior to the Voting Record Time in respect of the Court Meeting; and

(iii) (if any) issued on or after the Voting Record Time and at or prior to the Hearing Record Time either on terms that the original or any subsequent holder thereof shall be bound by this Scheme or in respect of which the holder thereof shall have agreed in writing to be bound by this Scheme,

(but excluding any IXEurope Shares held by Equinix or any member of the Equinix Group);

IXEurope plc: IXEurope plc, a company incorporated in England and Wales under registered number 03796971;

IXEurope Shareholders: holders of the IXEurope Shares;

IXEurope Shares: ordinary shares of 1 pence each in the capital of IXEurope;

uncertificated or uncertificated form: in relation to a share or other security, a share or other security title to which is recorded on the relevant register of the share or security as being held in uncertificated form in CREST, and title to which, by virtue of the Regulations, may be transferred by means of CREST; and

Voting Record Time: the time fixed by the Court for determining the entitlement to vote at the Court Meeting, as set out in the notice of the Court Meeting.

THE SCHEME

In consideration for the cancellation of the Scheme Shares and the allotment and issue to Equinix and/or any subsidiary of Equinix and/or its nominee of the new Shares as provided in clause 1 of this Scheme, Equinix shall pay to or for the account of the Scheme Shareholders on the register of members of IXEurope at the Scheme Record Time the sum of 140 pence in respect of each Scheme Share then held by such persons.

Equinix and IXEurope may jointly consent, on behalf of all persons affected, to any modification of, or addition to, this Scheme or to any condition approved or imposed by the Court.

Dated: 26 July 2007

APPENDIX I: CONDITIONS TO IMPLEMENTATION OF THE PROPOSALS AND THE SCHEME

The Proposals are subject to English law and the terms and conditions set out in this document. The courts of England shall have exclusive jurisdiction to settle any disputes which may arise out of or in connection with the Proposals.

and all applicable waiting and other time periods during which any such Relevant Authority could decide to take, institute or threaten any such action, proceeding, suit, investigation, enquiry or reference having expired, lapsed or been terminated;

and no event having occurred which, under any provision of any material agreement, arrangement, licence or other instrument to which any member of the IXEurope Group is a party or by or to which any such member or any of its assets may be bound or be subject, would or could reasonably be expected to result in any events or circumstances as are referred to in subparagraphs (1) to (8) of this paragraph (F);

“valid acceptances being received (and not, where permitted, withdrawn) by not later than 1.00 p.m. (London time) on the first closing date of the takeover offer (or such later time(s) and/or date(s) as Equinix may, subject to the rules of the City Code and with the consent of the Panel, decide) in respect of not less than 90 per cent. (or such lower percentage as Equinix may decide) (i) of the IXEurope Shares to which the takeover offer relates; and (ii) of the voting rights attached to those shares, provided that this condition will not be satisfied unless Equinix (together with its wholly owned subsidiaries) shall have acquired or agreed to acquire (whether pursuant to the takeover offer or otherwise) IXEurope Shares carrying in aggregate more than 50 per cent. of the voting rights normally exercisable at a general meeting of IXEurope, including for this purpose (except to the extent otherwise agreed by the Panel) any such voting rights attaching to IXEurope Shares that are unconditionally allotted or issued before the takeover offer becomes or is declared unconditional as to acceptances whether pursuant to the exercise of any outstanding subscription or conversion rights or otherwise. For the purposes of this condition:

APPENDIX II: INFORMATION ON EQUINIX AND EQUINIX, INC.

Equinix is a private limited company registered under the laws of England and Wales on 26 June 2007 under company number 06293383. The registered office of Equinix is at 20-22 Bedford Row, London EC1R 4JS, United Kingdom.

The authorised share capital of Equinix as at the date of this document is £1,000 divided into 1,000 ordinary shares of £1.00 each, of which one has been issued and is currently owned by Equinix, Inc.

The directors of Equinix are:

Stephen M. Smith (Director)

Keith D. Taylor (Director)

Save as set out in paragraphs 7 and 8.1 of Appendix V of this document, Equinix has not carried on any business prior to the date of this document.

Equinix, Inc. is a corporation incorporated under the laws of Delaware, USA on 22 June 1998. The principal place of business of Equinix, Inc. is at 301 Velocity Way, 5th Floor, Foster City, CA 94404-4803, USA.

The directors of Equinix, Inc. are:

Steven T. Clontz (Director)

Steven P. Eng (Director)

Gary F. Hromadko (Director)

Scott G. Kriens (Director)

Irving F. Lyons, III (Director)

Christopher B. Paisley (Director, Chairman and Independent Financial Expert of the Audit Committee)

Stephen M. Smith (President and Chief Executive Officer / Director)

Peter F. Van Camp (Executive Chairman of the Board)

Equinix, Inc. is the leading global provider of network-neutral datacentres and internet exchange services for enterprises, content companies, systems integrators and network services providers. Through the company’s Internet Business Exchange™ (IBX)^® centres in ten markets in the US and Asia, customers can directly interconnect with every major global network and ISP for their critical peering, transit and traffic exchange requirements. These interconnection points facilitate the highest performance and growth of the internet by serving as neutral and open marketplaces for internet infrastructure services, allowing customers to expand their businesses while reducing costs.

APPENDIX III: FINANCIAL INFORMATION ON IXEUROPE

Nature of financial information in relation to IXEurope

The financial information contained in paragraphs (A) to (D) below relating to IXEurope has been extracted without material adjustment from the audited consolidated financial statements of IXEurope for the three years ended 31 December 2004, 2005 and 2006. The information set out below does not constitute statutory accounts of IXEurope for each of the three years ended 31 December 2004, 2005 and 2006 on which unqualified audit reports (not containing a statement under section 237(2) or (3) of the Companies Act 1985) were given by the auditors, and have been delivered to the Registrar of Companies.

Accounting policies

IXEurope is a company domiciled in England. The consolidated financial information of IXEurope for the 3 years ended 31 December 2006 comprise the IXEurope Group.

Statement of Compliance

The consolidated financial information has been prepared in accordance with International Financial Reporting Standards (IFRSs), its interpretations adopted by the International Accounting Standards Board (IASB), as adopted by the EU and with those parts of the Companies Act 1985 applicable to companies preparing accounts under IFRS.

The financial statements for the year ended 31 December 2004 were originally prepared under UK GAAP but were restated under IFRS in the comparative figures published in the financial statements for the year ended 31 December 2005.

The preparation of financial statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.

Standards, Amendments And Interpretations Effective 2006 But Not Relevant

The following standards, amendments and interpretations to published standards are mandatory for accounting periods beginning on or after 1 January 2006 but they are not relevant to the IXEurope Group’s operations for the year ended 31 December 2006:

Standards and Interpretations to Existing Standards That Are Not Yet Effective And Have Not Been Adopted Early By The IXEurope Group

The following standards and interpretations to published standards have been published that are mandatory for the IXEurope Group’s accounting periods beginning on or after 1 January 2007 or later periods but which the IXEurope Group has not adopted early:

IFRS 7—Financial Instruments: Disclosures and the complementary amendment to IAS 1, Presentation of financial statements—capital disclosures (effective for annual periods beginning on or after 1 January 2007). IFRS 7 introduces new disclosures relating to financial instruments.

IFRIC 8—Scope of IFRS 2 (effective for annual periods beginning on or after 1 May 2006). IFRIC 8 clarifies that IFRS 2 Sharebased Payment applies to arrangements where an entity makes share-based payments for apparently nil or inadequate consideration.

IFRIC 10—Interim Financial Reporting and Impairment (effective for annual periods beginning on or after 1 November 2006). IFRIC 10 concludes that an entity shall not reverse an impairment loss recognised in a previous interim period in respect of goodwill or an investment in either an equity instrument or a financial asset carried at cost.

IFRS 8—Operating Segments (effective for annual periods beginning on or after 1 January 2009). IFRS 8 replaces IAS 14—Segmental Reporting and introduces new requirements relating to how segments are identified and disclosures required.

IFRIC 11—IFRS 2: Group and Treasury Share Transactions (effective for annual periods beginning on or after 1 March 2007). IFRIC 11 contains guidance on how an entity should account for share-based payment involving an entity’s own equity instruments in which the entity chooses or is required to buy its own equity instruments (treasury shares) to settle the share-based payment obligation, and guidance on the treatment when a parent grants rights to its equity instruments to employees of its subsidiary or a subsidiary grants rights to equity instruments of its parent to its employees in the individual entities’ financial statements.

Interpretations To Existing Standards That Are Not Yet Effective And Not Relevant To The Operations Of The IXEurope Group

IFRIC 7—Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies (effective for annual periods beginning on or after 1 March 2006). IFRIC 7 contains guidance on how an entity would restate its financial statements in the first year it identifies the existence of hyperinflation in the economy of its functional currency. As none of the IXEurope Group entities has a currency of a hyperinflationary economy as its functional currency, IFRIC 7 is not relevant to the IXEurope Group’s operations.

IFRIC 9—Reassessment of Embedded Derivatives (effective for annual periods beginning on or after 1 June 2006). IFRIC 9 concludes that an entity must assess whether an embedded derivative is required to be separated from the host contract and accounted for as a derivative when the entity first becomes a party to the contract. Subsequent reassessment is prohibited unless there is a change in the terms of the contract that significantly modifies the cash flows that otherwise would be required under the contract, in which case reassessment is required. IFRIC 9 is not relevant to the IXEurope Group’s operations because none of the terms of the IXEurope Group’s contracts have been changed.

IFRIC 12—Service Concession Arrangements (effective for annual periods beginning on or after 1 January 2008). IFRIC 12 clarifies how certain aspects of existing IASB literature are to be applied to service concession arrangements. IFRIC 12 is not relevant to the Group’s operations.

Basis of Consolidation

The consolidated financial information includes the financial statements of IXEurope and its subsidiary undertakings made up to 31 December 2006. The acquisition method of accounting has been adopted. Under this method the results of subsidiary undertakings acquired or disposed of in the period are included in the consolidated income statement from the date the parent gained control until such time control ceases. Control exists where IXEurope has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities.

Critical Accounting Estimates And Judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed reasonable under the circumstances.

Estimated Impairment Of Goodwill

The IXEurope Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy on goodwill. The recoverable amounts of cash-generating units are determined by value-in-use calculations. These calculations require the use of estimates (See Note 9).

Fair Value Of Share Option Grants

The fair value of share options granted in the year is estimated at the date of grant using a valuation technique. The IXEurope Group has carefully considered the inputs into the valuation model based on future expectations and comparative companies.

Details of valuation technique used, and inputs for the models are disclosed in Note 13.

Foreign Currencies

Transactions entered into by the IXEurope Group entities in a currency other than the currency of the primary economic environment in which it operates (the “functional currency”) are recorded at the rates ruling at the date of the transaction. Foreign currency monetary assets and liabilities are translated at the rates ruling at the balance sheet date. Exchange differences arising on the retranslation of unsettled monetary assets and liabilities are similarly recognised immediately in the income statement, except for foreign currency borrowings qualifying as a hedge of a net investment in a foreign operation.

On consolidation, the results of overseas operations are translated into sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations, including goodwill arising on the acquisition of those operations, are translated at the rate ruling at the balance sheet date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised directly in equity (the “foreign exchange translation reserve”).

Pension Costs

A number of companies within the IXEurope Group operate defined contribution pension schemes. The assets of these schemes are held separately to those of the IXEurope Group in independently administered funds. The pension cost charge represents contributions payable by the IXEurope Group in the year.

Property, Plant And Equipment

Items of property, plant and equipment are stated at cost less accumulated depreciation and impairment provisions.

Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment.

Depreciation is provided to write off the cost less the estimated residual value of tangible fixed assets by equal installments over their estimated useful economic lives as follows:

Freehold land and assets in the course of construction are not depreciated.

Operating And Finance Leases

Operating lease rentals relating to colocation facilities are charged to cost of sales in the income statement on a straight line basis over the period of the lease.

Benefits received as an incentive to sign operating leases for colocation facilities are charged to the income statement on a straight line basis over the full length of the lease.

Assets acquired under finance leases are capitalised and the capital element of the lease rentals is included in creditors. Lease payments are analysed between capital and interest. The interest element is charged to the income statement over the period of the lease and is calculated so that it represents a constant proportion of the lease liabilities. The capital element reduces the balance owed to the lessor.

Assets under finance leases are depreciated over the shorter of the lease terms and the useful life of equivalent owned asset.

Where the IXEurope Group has entered into a sale and leaseback arrangement resulting in a finance lease, any excess of sales proceeds over the carrying amount is deferred and amortised over the lease term.

Income Tax

Income tax on the loss for the year comprises current and deferred tax. Income tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.

The following temporary differences are not provided for: goodwill not deductible for tax purposes; the initial recognition of assets or liabilities that affect neither the accounting nor the taxable profit; and differences relating to investments in subsidiaries to the extent they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Goodwill

All business combinations are accounted for by applying the acquisition method. Goodwill represents amounts arising on acquisition of subsidiaries and businesses. In respect of business combinations that have occurred since 1 January 2004, goodwill represents the difference between the cost of the acquisition and the fair value of the net identifiable assets acquired.

In respect of acquisitions prior to this date, goodwill is included on the basis of its deemed cost, which represents the amount recorded under UK GAAP. The classification and accounting treatment of business combinations that occurred prior to 1 January 2004 were not reconsidered in preparing the IXEurope Group’s opening IFRS balance sheet at 1 January 2004.

Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash-generating units and is no longer amortised but is tested annually for impairment.

Negative goodwill (representing the excess of the fair value of the separable net assets acquired over the fair value of the consideration given) is recognised directly in the income statement.

Revenue

Revenue represents the amounts (excluding value added tax) derived from the provision of colocation and related services to third party customers during the period. Where invoices are raised in advance for colocation services, the revenue is deferred and spread over the period to which it relates. All other revenue, including installation revenue, is recognised in the profit and loss account as agreed milestones are achieved.

Cash And Cash Equivalents

Cash and cash equivalents, for the purpose of the cash flow statement, comprise cash in hand and deposits repayable on demand, less overdrafts payable on demand. Restricted cash is disclosed under debtors.

Impairment

The carrying amounts of the IXEurope Group’s assets, other than deferred tax assets, are reviewed at each balance sheet date to determine whether there is any indication of impairment. If such an indication of impairment exists, the asset’s recoverable amount is estimated.

For goodwill, the recoverable amount is estimated at each balance sheet date.

An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in the income statement.

The recoverable amount of the IXEurope Group’s assets is the greater of their net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risk specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

An impairment loss in respect of goodwill is not reversed.

In respect of other assets, an impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment had been recognised.

In testing for impairment, management has to make judgements and estimations about future events which are uncertain. Adverse results compared to these judgements could alter the decision of whether an impairment is required. See Note 9 for the key assumptions and results of the impairment review carried out in 2006.

Borrowing Costs

Borrowing costs are recognised as an expense in the period in which they are incurred except for borrowing costs relating to the acquisition of a qualifying asset which are capitalised with the cost of the asset. During the year ending 31 December 2006 borrowing costs of £Nil (2005: £103k) were capitalised.

Other Financial Liabilities

Other financial liabilities include the following items:

Convertible Debt

The proceeds received on issue of the IXEurope Group’s convertible debt are allocated into their liability and equity components. The amount initially attributed to the debt component equals the discounted cash flows using a market rate of interest that would be payable on a similar debt instrument that did not include the right to convert. Subsequently the debt component is accounted for as a financial liability measured at amortised cost.

The difference between the debt proceeds of the convertible debt and the amount allocated to the debt component is credited directly to equity and is not subsequently re-measured. On conversion, the debt element is credited to share capital and share premium as appropriate.

Share Option Schemes

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to the income statement over the vesting period. Equity settled share options are recognised with a corresponding credit to equity and cash settled share options are recognised with a corresponding credit to accruals.

Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. As long as all other vesting conditions are satisfied, a charge is made irrespective of whether the market vesting conditions are satisfied. The cumulative expense is not adjusted for failure to achieve a market vesting condition. Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to the income statement over the remaining vesting period. Where equity instruments are granted to persons other than employees, the income statement is charged with the fair value of goods and services received.

Intangible Assets

Externally acquired customer contract intangibles are initially recognised at cost on the balance sheet and amortised on a straight line basis over the life of the contract. The life of the intangible assets ranges from 4 months to 3 years.

IPO Costs

Costs relating directly to the issue of new shares are set against share premium. Costs that relate to both new and existing shares are set against share premium in the proportion of new shares issued to total shares listed.

Hedge Accounting

Hedge accounting is applied to financial assets and financial liabilities only where all of the following criteria are met:

The IXEurope Group does not hold or issue derivative instruments for speculative purposes, although derivatives not meeting the above criteria are designated for accounting purposes at fair value through profit or loss as appropriate.

The IXEurope Group enters into floating to fixed interest rate swaps. The effective part of these derivatives are measured at fair value with changes in fair value recognised directly to equity. If the IXEurope Group closes out its position early, the cumulative gains and losses recognised directly in equity are frozen and recycled through the income statement using the effective interest rate method.

Dilapidation Provisions

Dilapidations are provided on leasehold properties where the terms of the lease require the IXEurope Group to make good any changes made to the property during the period of the lease. Where a dilapidation provision is required the IXEurope Group recognises an asset and provision equal to the discounted cost of restating the property to its original state. The asset is depreciated over the remaining term of the lease.

Segment information is presented in respect of the IXEurope Group’s geographical and business segments. The primary format, geographical segments, is based on the IXEurope Group’s management and internal reporting structure.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly income earning assets and revenue, interest-bearing loans, borrowings and expenses, and corporate assets and expenses.

Geographical Segments

As at 31 December 2006, the Group operated datacentres in four European countries (United Kingdom, France, Germany and Switzerland). It is considered that France, Germany and Switzerland represent regions which are substantially similar and have therefore been combined. Thus, there are two reportable segments, United Kingdom and the rest of Europe. There is no difference between location of the segment assets and the segment customers.

Business Segments

IXEurope has one class of business which is to provide carrier neutral datacentre and related services to its customers.

Amounts within capital expenditure and depreciation include those acquired with subsidiaries and businesses during 2005.